Stock Market LIVE Updates, Monday, September 23, 2024: Markets in India were likely to start on a positive note on Monday, as indicated by GIFT Nifty futures, even as investors around the world wondered how long the momentum from the US Federal Reserve’s outsized rate cut would continue.
At 7:25 AM, GIFT Nifty futures were at 25,900, around 150 points ahead of Nifty ftures’ last close.
Markets in India had climbed to record levels on Friday, with both the benchmark indices BSE Sensex and Nifty 50 ending 1 per cent higher, each.
The Sensex gained 1,360 points, or 1.63 per cent, to close at 84,544.31, while the Nifty 50 hit a fresh all-time high of 25,849.25 before ending with gains of 375 points, or 1.48 per cent higher, at 25,791.
Meanwhile, markets in the Asia-Pacific region opened lower on Monday as investors digested interest rate decisions from China and Japan.
While markets in Japan were closed on Monday for a public holiday, Australia’s S&P/ASX 200 opened 0.43 per cent higher.
South Korea’s Kospi fell 0.15 per cent and Hong Kong’s Hang Seng index futures were at 18,199, lower than the HSI’s last close of 18,258.57. Futures for China CSI 300 stood at 3,183.8, lower than their last close of 3,201.05.
That apart, Wall Street closed flat on Friday, hovering near the previous session’s record-high close for the Dow and S&P 500, while the dollar firmed.
All three major US stock indices ended the week higher, not far off all-time peaks hit on Thursday as buyers piled in to riskier assets.
Markets are fully pricing in a cut of at least 25 bps in November, with expectations for a cut of 50 bps given a 48.9 per cent chance, according to CME’s FedWatch Tool.
The Dow Jones Industrial Average closed up 0.09 per cent, to 42,063.36, the S&P 500 ended down 0.19 per cent, to 5,702.55 and the Nasdaq Composite rounded out the week 0.36 per cent lower, at 17,948.32.
The MSCI index of world stocks drooped 0.21 per cent, to 837.69.
Rounding off a busy week for monetary policy, the Bank of Japan left rates unchanged. Markets had been expecting rates to remain steady, but Governor Kazuo Ueda tempered expectations around imminent rate hikes.
The US economic outlook also rippled into the Bank of Japan’s meeting. Ueda said uncertainty around the world’s largest economy and market volatility could impact its policy moves.
The dollar climbed to a two-week high against the yen after Ueda’s remarks.
The dollar gained ground after suffering losses earlier in the week. The index, which measures the greenback against a basket of currencies, was up 0.12 per cent to 100.79.
European stocks had fallen earlier from two-week highs, with automakers leading the slide after Mercedes-Benz cut a profit margin target, citing weakness in China.
In China, too, the central bank kept its benchmark lending rates on hold, countering expectations for a move lower. Chinese blue chips edged up 0.2 per cent but remained close to a seven-month low touched earlier in the week.
Downbeat data in recent days has raised hopes of aggressive stimulus to prop up the world’s second largest economy.
Commodities also held on to their weekly gains. Gold touched a record high at $2,614 an ounce.
Two major oil benchmarks ended lower on the day, but more than 4 per cent higher on the week.
Brent futures settled down 0.52 per cent, at $74.49 a barrel. US WTI crude futures settled down 0.4 per cent, to $71.92.